Case Unigro: how to communicate a restructuring to all stakeholders

Due to economic circumstance and strategic motives, the Belgian e-commerce firm Unigro had to cease its activities. CEO Yves Moens faced the challenging responsibility of informing stakeholders and employees about the reorganisation. For support in their crisis communication, they got in touch with Square Circle.

 

Why did Unigro decide to contact Square Circle?

“For various reasons, Unigro had to stop its activities, which resulted in a collective dismissal of all our employees”, says Yves Moens. “In the first phase, we had to communicate this to our works council, our employees, and all our other stakeholders: customers, labour administration, partners, suppliers, and the media. Considering our inexperience with this type of communication, its delicate nature and the importance of timing, we decided to contact an outside expert.”

How Square Circle offered crisis communication support

Roadmap

Crisis communication is about conveying a narrative, tailored to the concerns and needs of its target group. That is why Square Circle first organised a workshop to map out stakeholders, decide what to communicate to each, what channels would be used and who would be responsible for the communication.

Crisis communication

Next, we further developed the narrative so it could be presented to the Works council in Belgium. Once approved by the group management and labour lawyer, we started creating the necessary communication artefacts, information tools and documents the management team could use to anticipate questions from stakeholders.

“It was incredibly important to involve the local management team in the process”, says Katrien Decroos, crisis communication expert at Square Circle, “If they understand the narrative, they can pass it on more easily to employees and onboard others. That would inspire trust. And trust was needed, as employees would have to continue work at Unigro months after the layoff announcement.”

Media training

Once Unigro’s story was clearly defined, Square Circle provided the management team with media training, showing them how to adjust their message to stakeholders and communication channels, and coaching on how to manage the employees on a day-to-day basis in uncertain times. Finally, on the day of the announcement, Katrien Decroos was present at Unigro’s headquarters to receive and address the press. “We were grateful to have a partner in our building who could accommodate the press, guide them and answer their questions”, says Yves Moens. “That was very favourable to our company’s image.”

Did Unigro consider the communication to be successful?

“We were very pleased with the final result”, remarks Yves Moens. “Our message was nicely tailored to each stakeholder and, thanks to a highly detailed roadmap, everything was planned out down to the minute at the announcement. Also, with Square Circle’s guidance, we were able to retain our employees’ trust through effective communication and uphold the long-standing reputation of Otto Group, our parent company.”

Would Unigro recommend the partnership with Square Circle?

“Absolutely”, says Yves Moens. “Their approach was very pragmatic and we loved that. They had tools and templates at their disposal which they could customise to our project and company. It offered a foothold for this difficult process. Add to that their flexibility and responsiveness, their readiness to answer any immediate questions we had. That is very valuable during a communication crisis where timing is everything. Without Square Circle, we would not have been able to communicate so accurately and professionally.”

What advice would Unigo give other companies undergoing a restructuring process?

“Make sure you are well prepared”, suggests Yves Moens. “That means surrounding yourself with the right partners to determine a communication strategy and roadmap, so you can convey the layoff announcement adequately to the stakeholders involved. Of course, this kind of preparation takes time. In many cases, headquarters wants communication to follow quickly, but you can only communicate this delicate message once. Luckily, the Otto Group gave us enough time to prepare. So, don’t rush it. A nuanced message takes time to compose.”

Do you need support with crisis communication? Square Circle has more then 20 years expertise in preparing, developing and implementing crisis communication strategy for restructurings, reorganisations and closures.  Square Circle trains spokespersons in handling the media and onboard internal communicators in communication in uncertain times. Get in touch with us for more information.

Company Restructuring: HR expert Jo De Cock shares her experiences on working together with Square Circle

Getting a company restructuring right requires a lot of knowledge and skill. Why exactly is it useful to call on external expertise? Katrien Decroos, Senior Communication Expert at Square Circle, asked Jo De Cock, currently Head of HR Western Europe at H.Essers.  At two other companies, she coordinated a reorganisation with the guidance of Square Circle.

 

Katrien: Why did you find it necessary to engage Square Circle?

Jo: “I have experienced two reorganisations in recent years: a closure with collective redundancies where the Renault Act applied, and another case where several people were made redundant for economic reasons but there was no collective redundancy in the legal sense of the word. In both cases, we realised we needed external help in terms of communication and mapping out all the stakeholders and the actions you take towards them. As a team, you’ve been working on it behind the scenes for a while and then some things seem obvious, while to the employees or the outside world it might not be. That’s when you need someone to hold up a mirror to you and help you take a few steps back and revisit your story. And that’s how I ended up at Square Circle.”

 

What was the biggest challenge?

“The main question was: how do we best articulate this, taking into account the feelings of each person involved? And: ‘how do you bring a valid story to the press with a balance between the business and human side of the story‘?

After all, your story must make sense on all sides. Because what do people read in the newspaper? X number of jobs are disappearing, nothing more. In the media, the human part of the story is often underexposed. It is important to have that story co-written by someone who has not lived through the whole preparation phase and looks at it with a new perspective.

In the last case, Square Circle also helped to draft a letter to all employees appropriately: on the one hand, explaining why the company is taking such a decision and, on the other, stating that you sincerely realise that this is tough for the employees involved and their families.

In addition, the practical script and roadmap that Square Circle prepares are also incredibly valuable, in addition to the compact but very insightful training for executives.”

 

How did this roadmap help you?

“It helps to bring structure to the process. The Square Circle team consist of communication professionals and at the same time they know the legislation well and what steps to take.

The existence of such a roadmap that indicates from day to day and sometimes even hour to hour what actions you take to each stakeholder gives you a good grip on things as it can be quite hectic when you are in the midstof a difficult announcement and the weeks that follow. Square Circle has guided such crisis situations very often.

There were actions we didn’t think of, but which they pointed out to us based on their experience. The roadmap structures the communication and legal process in a very good way…”

 

Can you outline how stressful such a company reorganisation can be?

“An intention to close a part of the business and collectively dismiss employees is never announced lightly.  The weeks before are therefore quite intense.  The day of the announcement itself certainly causes stress: for the first time, you confront employees with an intention that will have dire consequences for them if the intention is confirmed. The realisation that a lot of employees may lose their jobs then comes in sharply. Even in those difficult circumstances, you want to handle things with the utmost respect for the staff. Square Circle has helped us here as well: ensuring that the whole process is done with the right empathy. You must be able to focus on people, which is not always obvious when you are in the middle of a process that also has very strict legal rules.

 

The role of the press is often problematic in reorganisations. How did that work out for you?

“Both HR and a few top management members have received training from Square Circle on how to deal with the press. That helps to stay in your own story and not get caught up in their questions. I would recommend such a training to anyone.  It prepares you to make your own point in the very short time a journalist allows you and show the human side of the story.

 

How did the HR department experience Square Circle’s help?

“As an HR department, when there is a collective redundancy, you are very busy dealing with the unions, the information and consultation procedure and afterwards negotiating a social plan. Of course, an announcement that there is an intention to make collective redundancies affects all employees in a company.  Managers are often as surprised as employees.  Their employees then look to them for support and seek reassurance and clarity. The Square Circle training ‘Communication in Uncertain Times’ gave them a very good framework to handle this. It gave them insights into how people react to such news and how to deal with it as a manager. I received very positive feedback from the managers about training. It is valuable that the direct managers also have someone outside HR to take them by the hand for a moment and say: look, this is how you can make it a little easier for your people.”

 

More insights? Register here to our webinar ‘The do’s and don’ts of a successful communication’ on Tuesday 7 March 2023 or subscribe to our Newsletter and you will soon receive our E-book on this topic.

Barry Callebaut and Ferrero back in production. What do we learn from the chocolate crisis ?

A crisis is always the ultimate test to expose the true soul of a company.

Salmonella contamination occurs frequently in Belgium but the majority never makes the news.  Very occasionally a message appears in the newspaper to announce a recall. Not so with Ferrero.

The core of crisis communication: VALUES!

The key component of any crisis communication is to show the company’s attitude toward a society value that is compromised by the crisis. In this case, the health of consumers and more specifically of the children who were victims of the Salmonella contamination. In our crisis masterclass and media training, we teach our clients to focus their communications on these values from the very first minute.

Safety and health are general values that apply to all human activities. The protection of families as the cornerstone of society is also at the top as well as ethical conduct and the protection of the environment with attention to the climate. These values are universal, so to speak.  Further values are the right of consumers to get adequate products and services and to be properly informed about them. The protection of the weak and the right to work are also part of the series. This is very topical, for example, within the immigration theme. Quality of life has risen sharply in recent years as a value, including the search for balance between private and professional life. Culture is also a value, and specifically local culture. Local norms and customs that determine how communities interact.

Murphy’s Law

A few weeks after Ferrero, salmonella also struck chocolate manufacturer Barry Callebaut. The company reacted decisively, leaving no doubt about its approach to protecting consumers with a clear communication. A company can emerge positively from a crisis if it cares about these social values and acts accordingly. In the case of Ferrero, all we heard was the deafening noise of silence. The perfect storm that could have been avoided.

Entropy and disorder: the fate of all human enterprises?

She is there, everywhere, at all times. She affects your private and professional life.

She is little known and little contested. Yet she consumes a lot of energy.

Her name? ENTROPY.

Entropy is a natural and irreversible phenomenon. The energy initially present in a system is transformed and ‘goes away’.

Entropy comes to us from physics but it is also perfectly visible in business.

To keep it simple: what is structured becomes de-structured, what is organized becomes disorganized, what is conceived becomes forgotten, continuously and naturally.

No one escapes this.

How do we fight against entropy? A few examples.

➡️ You want to encourage feedback in your team? Systematically put the topic on the agenda of your team meetings.

➡️ You want to reduce the number of accidents at work? After safety trainings, ask your employees to regularly review the situation on the floor in person with colleagues.

➡️ Are you starting a project? Consider “new blood” from the beginning if the project is going to be long and build up the “reserves” in the project team in time.

Fighting against entropy is within everyone’s reach.

1️⃣  Accept that it is universal and inescapable.

2️⃣  Make your colleagues aware of its existence.

3️⃣  You will be attentive to its effects on those around you and on yourself.

The Square Circle team guides people and organizations in growth, development and transformation. Supporting business dynamics is one of our great passions.

Why persuasion is so difficult

In a company, persuasion is a daily necessity. Changing operating methods, launching new ideas, successfully completing transformation projects, improving quality, ensuring safety at work, selling new products to customers, successful negotiation… This often requires investing a lot of energy for a result that does not always meet expectations. And there’s a reason for that: We do not use the ‘persuasion machine’ present in the form of the three brains that make up any human being.

The 3 brains that govern us
Did you know that the process of persuading a human being involves engaging the three brains that he possesses? Unfortunately, when we want to persuade, most of the time we deploy arguments that use just a small part of the first brain. So we shouldn’t be surprised that the impact of our communication is often unpredictable!

Our first brain is the one everyone knows. It contains 100 billion neurons. It is composed of two hemispheres. Simply put, the left side is essentially rational. It wants to understand everything, analyse everything and make a detailed assessment of the information provided to it, step by step. You should also realise that the left side does not want to take any risks. This is the origin of the resistance to change that one naturally observes in humans.

We all have a right brain hemisphere which is our spatial, creative, visual, relational side. It anticipates constantly. It is ready to take risks, without much calculation about them.

It works through mental images. Concepts, ideas, projects are all mental images, sometimes complex, that our brain has to decode.

A beneficial interaction
It was long thought that the two sides of the brain functioned with one being dominant over the other. At times either basically rational. Or then again, more emotional. But it has recently become clear that this is not the case at all. The two hemispheres are in constant interaction and continuously influence each other. When you communicate, you create a real ‘battle’ of the hemispheres in the hope that the outcome will be favourable to you.

Your communication will therefore be aimed at reassuring the left side of your target audience about the relevance of the arguments in order to control the analytical phase of reasoning. In doing so, your communication will also need to convey the ‘mental images’ that will lead to buy-in by the right side and then to action.

But never forget this: persuading an audience requires not only rational arguments, which is what 99% of managers do most of the time.

Rationality often fails to convince
Our second brain consists of our heart and our digestive system. It is composed of 540 million neurons. This second brain is the centre of our emotions. The most important decisions we make in our lives are initially processed by the two hemispheres of the first brain. But then, quite often it is based on ‘our gut feeling’ that we ultimately decide to go ahead or not, by ‘sensing’ that it’s the right decision.

In your communication you will therefore also have to integrate emotional arguments (the ‘what’s in it for me’) and action-orientated arguments to ‘move people’. By addressing the second brain and its emotional power of persuasion in this way, you double your persuasive impact.

A brain that remains little known
But there is also a third brain. This is made up of 300 billion glial cells that surround our first brain. These cells, whose name is related to the English word for ‘glue’, are specialised in various tasks: supporting neurons, supplying them with nutrients, accelerating neurotransmission, for example. We are only just now discovering the full potential of this veritable third brain.

One of the first applications we can draw from this is that the energy released by the glial cells decreases over time. A wise manager will therefore hold important meetings at the beginning of the week and at the beginning of the day rather than at the end of the week or at the end of the afternoon, because most brains will have difficulty concentrating, as the available energy has been partly exhausted.

If you want to have the energy and interaction to conduct a fruitful discussion, plan your meetings with the glial cells in mind!

Persuade by communicating
Persuasion through communication is within everyone’s reach. There’s no reason why you can’t make your persuasive power even stronger by from now on targeting the 3 brains of anyone you want to persuade. Want to find out how? Click here.

The contribution of professional communication in the management of restructurings

The beneficial effect of professional communication in any organizational restructuring, and especially when there are mass redundancies involved, is now widely recognized, backed up by facts and figures. The effect operates at a number of levels.

1. Being in control of the project right from the beginning and keeping control throughout the process

There is a saying: “If you want peace, prepare for war.” Preparing for a corporate restructuring must avoid all amateurishness and ensure the inclusion of all the target groups on which the firm depends. Specific preparation must be made to back up the internal announcement, handle the press and other mass media, and manage external communication.

Crisis scenarios will have to be studied in advance and borne in mind when formulating a crisis plan. There must be provision to train people in handling the media and uncertainty. All of this will have to be included in specific arrangements for organization and planning. A professional approach to communication will give the firm a significantly greater chance of succeeding in its plan.

2. Ensuring the senior managers’ credibility and protecting the firm’s reputation when dealing with the media in difficult circumstances, while also retaining trust among customers, banks, strategic suppliers, governmental authorities, etc.

At times of corporate restructuring, the press and other media primarily focus on the attitude the firm adopts towards the staff, rather than looking at the basic problem. A journalist knows that a firm’s announcement of an “intention” actually means that it is determined, and that nothing will prevent it from carrying out the plan! On the other hand, all eyes will be on the firm’s attitude towards industrial-relations problems. Specific training in handling the media will make it possible to frame messages that correspond with the media’s values while meeting the firm’s aims. The same is true in relation to customers, banks, important suppliers and the authorities. A proactive and personalized approach will make all the difference in terms of trust in the firm and the firm’s reputation.

 
3. In case of a collective dismissal, avoiding trade unions or staff members resorting to legal proceedings for failure to comply with Belgium’s Loi Renault, with the risk of financial and other penalties being imposed

Every word is important when there is an intention to close or restructure a firm, as it may be used against the organization. A professional approach to communication will ensure that the messages communicated both internally and externally comply scrupulously with the law. This must apply not only to documents but also in orally communicated messages from managers. Those in charge of communication must, for this purpose, have a good knowledge of what is implied by the Loi Renault and also have wide experience enabling them to brief senior and other managers. Bringing a professional approach to bear in communication should avoid legal appeals being made, based on shortcomings or communication errors at any stage.

4. Avoiding the dissemination of incorrect information that can produce conflicts

A basic rule for success in communication is being proactive. Being the first to disseminate a message is definitely an advantage over the trade unions. It is not enough, however. The announcement of a corporate restructuring must be framed according to certain communication principles if it is to be persuasive throughout the firm. Expressing the “business case” for a restructuring in terms that are clear and comprehensible to everyone is a job in itself.

It has been shown that clear and proactive communication avoids giving trade unions an opportunity to sow doubt, and makes it possible to avoid “emotional” types of industrial action.

 5. Ensuring the plan’s credibility and that its effect is beneficial for the future, with no loss of the employees who hold the key to the firm’s successful relaunch

In any restructuring, two types of message have to be communicated: messages for those who may leave the firm and, even more importantly, messages for those who will remain and on whom the firm will depend for making the relaunch or plans for change a success.

This is a delicate exercise. Achieving the right balance depends on numerous factors. Control over these is important, so as to avoid losing key employees and prepare for a successful relaunch.

6. Avoiding or limiting industrial-relations conflicts, and managing crises, while keeping the firm as fully operational as possible

Avoiding and managing industrial-relations crises are a job in its own right within the communication field. Keeping the firm operational in particularly volatile or emotional circumstances is not something where you can ad lib. In either case, expertise in managing human behavior and change is essential, as is solid experience of managing industrial-relations crises. This experience has to be communicated to the managers (through general training and specific briefing) to assist in controlling difficult situations that can arise in everyday dealings with the staff.

 7. Managing the situation when negotiations have reached a stalemate

Often, a stalemate can be overcome by a thoroughly convincing communication initiative to the staff, sometimes backed up by the media. Examples have occurred where staff representatives have refused to participate in the works-council meeting where an announcement was to be made. Other cases have been where there was a ballot to accept an industrial-relations plan, etc. There is no shortage of instruments, but what really matters is to develop a winning strategy, based on extensive experience of the field.

 8. Training and supporting the supervisory staff in their communication activities aimed at changing opinions, accepting that the information and consultation phase is over, and ensuring the business continues

Middle management is a fundamental link in communication with the grass roots. People now stress that 80% of the messages communicated by a firm have to go through the supervisory staff, with only 20% being amenable to management from the center. This is especially true for middle managers, who often find themselves very much alone when dealing with a restructuring plan and staff reactions and questions. It has been noted that appropriate training in change-related communication and frequent back-up in the form of arguments or questions & answers are really helpful for these managers. The positive influence on grass roots’ opinions and on continuing business is widely recognized.

 9. Managing the post-restructuring relaunch in order to achieve the plan’s aims

During a restructuring, a lot of energy is expended and resources deployed in the communication of the project and the management of the different steps of the process. This often creates a specific dynamic in terms of communication channels that should be kept open and alive after the restructuring. This contributes a lot to remobilizing the employees around the company project in order to provide the impetus needed to remotivate the staff and achieve the firm’s plan.